Tefen: Operational revenues have soared by 67% in the fourth quarter following a chain of acquisitions

Tefen's acquisitions in Israel and the results of the expansion efforts targeting the US pharmaceutical market, have led to a sharp growth of the company's operational revenues in the 4th quarter of 2006.
Tefen's acquisitions in Israel and the results of the expansion efforts targeting the US pharmaceutical market, have led to a sharp growth of the company's operational revenues in the 4th quarter of 2006.
Tefen, a management consulting firm, has reported a 32% sales growth in the last quarter of 2006 compared with the same period in 2005, reaching the NIS 34.5 M figure.

Erez Tova, Tefen's CFO, attributes the rise in sales on the US pharmaceutical market from NIS 1.4 M in 2005 to NIS 5.6M in 2006 to the further growth of the company's sales in that sector of the US economy. The growth has been yielded by the marketing efforts of the company, which have continued over 2 years, and projects in consulting services, such as Pfizer's factory operation enhancement in Puerto Rico.

According to Tova's estimations, the growth trend in the company's revenues from consulting services provided to the US pharmaceutical sector will continue into 2007. The activities of the pharmaceutical sector worldwide have been a major growth driver of the company in the 4th quarter yielding NIS 18.3 M in revenues compared with NIS 11.4 M in the same quarter of 2005 despite a slight decrease in the revenues of this sector on the UK market.

Another factor of Tefen's sales growth has been the company's activities in Israel, yielding NIS 44.8 M in revenues in 2006, which constitutes an 18% growth compared with 2005, and is derived from the acquisitions of POC, a strategic consulting firm, in September 2006; of Rasner, which specializes in supply chain management consulting, storage and logistics facilities, in November 2005, and of the project management consulting services of Pilat in September 2006.

Tefen's operational revenues have grown by 67% in the past quarter, compared with the same period of 2005, and have reached NIS 5.6 M due to the control over the sales, marketing, management and general expenses exercised despite the rapid expansion of the company from the beginning of 2006.

Tefen's net revenue decreased by 4.5% in the last quarter of 2006 compared with the same period of 2007 and reached NIS 3.1 M due to financing expenses of NIS 117,000 compared with financing revenues of NIS 850,000 in the same period of 2005.

Tefen will distribute NIS 4 M in dividends, which equals NIS 1.5 per share, constituting a 3.2% dividend per share, whose value has risen by 53% in the past 12 months.

NIS, K

 

Tefen	31.12.05	31.12.06
Total revenues	108,713	116,654	Market value	123,074
Gross revenues	34,496 32%	35,442 30%	shareholders equity	44,052
Sales and management	19,957 18%	20,536 18%	Equity Multiplier	2.79
Operational revenues	14,539 13%	14,906 13%	Price earning ratio	13.77
Financing revenues	1,653	-938	Financial Leverage	0.81
Net revenue	10,153 9%	8,745 7%	Share price	46.87
Dividend per share	3.87	3.33	Total balance	79,954